On the relationship between labor market policies and outcomes in Bolivia: A search and matching approach

Ricardo Nogales (), Pamela Córdova and Manuel Urquidi ()

Estudios de Economia, 2019, vol. 46, issue 1, 61-87

Abstract: In this paper we assess the relationship between labor policies and market outcomes in Bolivia, accounting for a large informal sector mostly comprised of self-employed entrepreneurs. We calibrate a job search and matching model to reproduce labor market features in 2013, a period in which important labor policy changes were simultaneously active for the first time. We focus on some effects of three specific policies namely a 14th salary, minimum wage increases and contributions to a ‘solidary pension fund’ on the sorting of workers between unemployment, formal and informal employment, as well as on the formal wage schedule.

Keywords: Labor markets; matching models; informality; labor policies (search for similar items in EconPapers)
JEL-codes: J08 J38 J46 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:udc:esteco:v:46:y:2019:i:1:p:61-87

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